Money Market Report for the week ending 13 July
ECB Monetary Operations
On 9 July, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 10 July and attracted bids from euro area eligible counterparties of €1.91bn, €0.37bn lower than the bid amount of the previous week. The amount was allotted in full at a fixed rate equivalent to the pre- vailing MRO rate of 0.00%, in accordance with current ECB policy.
On 11 July, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.09bn, which was allotted in full at a fixed rate of 2.41%.
Domestic Treasury Bill Market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91- and 182-day bills for settlement value 12 July, maturing on 11 October and 10 January 2019, respectively. Bids of €40m were submitted for the 91day bills, with the Treasury accepting €30m, while bids of €20m were submitted for the 182-day bills, with the Treasury accepting €1m. Since €16m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €15m, to stand at €359m.
The yield from the 91-day bill auction was -0.353%, unchanged from bids with a similar tenor issued on 5 July, representing a bid price of €100.0893 per €100 nominal. The yield from the 182- day bill auction was -0.285%, up by 7.2 basis points from bids with a similar tenor issued on 28 June, representing a bid price of €100.1443 per €100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
This week the Treasury will invite tenders for 28-day and 91day bills maturing on 16 August and 18 October, respectively.